of the following is recorded in the U.S. balance of payments 1. foreign investme
ID: 1106504 • Letter: O
Question
of the following is recorded in the U.S. balance of payments 1. foreign investment in the United States II. U.S. investment abroad account? III. the U.S. government deficit or surplus A) III only B) I and II c) I and D) I, II and III 44) A country's balance of payments accounts record A) the country's net indebtedness to foreigners. B) its international trading, borrowing, and lending. C) the flow of human and nonh uman resources between it and its trading partners. D) only its official transactions with other governments 45) U.S. official reserves are the A) reserves of U.S. dollars held by the World Bank B) U.S. government's holdings of foreign currency C) reserves of U.S. dollars held by foreign banks D) holdings of foreign currency by the public and the banks interest rate on a savings 46) In late 2010 the National Bank of Australia offered a 4 percent account while Bank of America offered 2 percent. This difference means that A) people expect the U.S. dollar to appreciate to 8 percent against interest rate parity to occur B) there will be a surplus of U.S. dollars in the foreign exchange market C) people expect the U.S. dollar to appreciate by 2 percent against the Australian dollar and interest rate parity to occur D) there will be a shortage of Australian dollars in the foreign exchange markets. the Australian dollar and 47) The sum of the current account, capital and financial account, and official settlements account is A) a positive number if the country has a trade surplus. B) a negative number if the country has a trade deficit. C) positive or negative depending on whether the domestic exchange rate is appreciating or depreciating. D) always equal to zero. balance. What relationship exists among these variables? C (T-G)+(X-M) (S-1) 49) Suppose Italy currently lends 1.5 billion euros to other nations and borrows 1 billion euros 48) Suppose X-M-net exports,T-G = government sector balance, and S-l-private sectorExplanation / Answer
43. Option D
All the options will be a part of the US balance of payment as it is the difference between the total value between payments into and out of a country over a period.
44. Option C
The balance of payments includes all the transactions between a country's residents and nonresidents involving goods and services, income along with the financial claims on and liabilities to the rest of the world (trading partners).
45. Option C
US official reserves are the holdings of gold and foreign currencies by the official monetary institutions.
47. Option C
The sign depends on the value of the domestic currency
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